China's Chip Policies Trigger
Challenge by Industry Groups

By

Andrew Batson Dow Jones Newswires

Updated June 6, 2003 12:01 a.m. ET

BEIJING -- China's policies to encourage the growth of its domestic semiconductor industry are meeting with increasingly vocal opposition from foreign industry groups and politicians, particularly in the U.S.

Though the government's tax incentives aren't new, the breadth and harshness of the criticisms they are now receiving is striking -- a reflection of both the importance of China's $19 billion market for semiconductors and its...